At least 127,000 Australian credit card consumers and up to 40 million consumers worldwide have been caught so far in a massive credit card security breach on transactions in the United States, including online transactions with US merchants.
It is reported that the security breach involved not only the misuse of consumer’s private information but also the skimming of personal account details from internet transactions.
Banks knew of the problem as early as December last year yet the Howard Government has done nothing to press the banks to inform consumers of the problem – consumers have been left vulnerable and in the dark.
Currently Australian legislation provides no onus for banks to inform consumers of the potential security breaches and risks of using their credit cards in particular parts of the world.
In Question Time today, the Minister waxed lyrical to the Federal Government’s so-called online security initiatives that they claim are aimed at preventing credit card fraud, however it is obvious that the government’s light touch approach to online security is not protecting Australian consumers. It appears that this security breach has been hidden from consumers in an effort to cover up the weakness of the Howard Government’s approach to this issue.
Surely the scale of the current security breaches highlight enough need for federal provisions that ensure Australian consumers are informed of potential risks they may be exposed to.
The Federal Government’s collaboration with Australian banks on online security is long overdue. The Howard Government needs to show leadership to develop systems and guidelines that will effectively provide for the highest level of online consumer protection possible.
Contact: Taryn Langdon 0147 148 059 or 02 6277 3334
